Tis the season … to accumulate debt, and in that spirit we thought we’d write about a pair of related and timely subjects. The first is a new study, containing findings that could help you pay off loans faster. The second is a new book that may be the most useful and thoughtful gift you can give. Both could make you wealthier and happier.First the study, which comes from a handful of researchers led by Israeli marketing professor Moty Amar and including Duke University’s Dan Ariely, one of the most creative minds in behavioral economics. In a series of surveys and studies, the investigators identified and examined a cognitive bias they call “debt account aversion”: a strong preference of people with multiple loans to pay off smaller debts first, even when it makes more sense to pay down larger balances on loans with higher interest rates.
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I would like to go one further. I would like to appeal to the common sense in people rather the emotional side of humanity that tends to drive us to make bad decisions. First, Christmas is supposed to be the celebration of the birth of Christ the Savior. The truth is that there is nothing, in the bible or otherwise, that clearly establishes December 25th as the day that Christ was born. Studies have been conducted that have determined different birth dates rangin from July to September. It has also been determined that the December 25th date was established During the reign of the Romans - who were pagans - in order to coincide with the winter solstice.
ReplyDeleteThen we have the issue of spending money. So much money is spent during the Christmas season that the Friday following Thanksgiving (the official start of the Christmas shopping season)has been given a name - Black Friday, indicating that this day starts the period of time during which businesses begin operating in the black and turnng a profit. But let's look at the bigger picture. Who benefits the most during the Christmas season? The Banks! That's right, the banks! By and large Americans run out and charge their credit cards up to the max during the Christmas season. Some paying as much as 25%. Then for the rest of the year they struggle to make payments to banks trying to pay off the debt in order to start all over next Christmas. Some never get on top of their payments to banks. Sadly, this is the culture banks have spent a fortune creating by playing on the emotions and religious beliefs of good, hard working Americans. The more you buy your loved ones for Christmas, the more you love them....right? Don't fall for this. Think about what you're doing. Don't buy yourself into debt in the name of Jesus Christ. Those of you who know him know thats not what he wants. We have but one master - and it isn't the bank.
848 am amen to that.
ReplyDeleteI have NEVER bought Christmas presents on CREDIT. NEVER WILL.
ReplyDeleteMore people should do the same. If you don't have it, don't buy it!